SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported) DECEMBER 24, 1996
SENTRY TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-12727 96-11-3349733
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) ID Number)
350 WIRELESS BOULEVARD, HAUPPAUGE, NEW YORK 11788
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (516) 232-2100
(Former name or former address, if changed since last report)
<PAGE>
Item 5. OTHER EVENTS
On December 24, 1996, KNOGO North America Inc. ("Knogo" or the "Company"),
predecessor company (for accounting purposes) to Sentry Technology Corporation
("Sentry"), completed a sale-leaseback transaction with respect to its
Hauppauge, New York facility. Knogo reported the sale- leaseback transaction on
its Current Report on Form 8-K, filed with the Securities and Exchange
Commission on January 8, 1997 ("Knogo's Form 8-K"), as an Item 5 event. Knogo
and Sentry have determined that the sale-leaseback should instead have been
reported by Knogo as an Item 2 event and, therefore, the text of Knogo's Form
8-K is, concurrently herewith, being amended and restated on a Form 8K/A being
filed by Knogo to include the narrative pro forma financial information set
forth below:
On December 24, 1996, the Company completed a sale-leaseback
transaction with respect to its Hauppauge, New York facility, resulting
in the receipt by the Company of net proceeds of approximately
$4,536,000, which approximated the carrying value of the land and
building. The lease covers a period of 20 years with quarterly lease
payments of $131,000. The lease agreement allows for an increase in
lease payments for years 4-20 based on a formula tied to the Consumer
Price Index. In accordance with Statement of Financial Accounting
Standard No. 13, "Accounting for Leases," the Company has accounted for
the land element of the lease as an operating lease and the building
element as a capital lease.
The effect of this transaction on a pro forma basis, had it occurred as
of the beginning of the year ended December 31, 1995, would be to
increase depreciation expense by approximately $91,000, increase rent
expense by approximately $148,000 and increase interest expense by
approximately $258,000.
The pro forma effect on the nine months ended September 30, 1996 would
be to increase depreciation expense by approximately $68,000, increase
rent expense by approximately $111,000 and increase interest expense by
approximately $247,000.
On a pro forma basis as of September 30, 1996, the Company's cash would
increase by approximately $4,536,000, net property, plant and equipment
would decrease by approximately $1,460,000, capital lease obligations
would increase by approximately $3,033,000 and a deferred gain of
approximately $43,000 would be recorded.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements - None.
(b) Pro Forma financial information - See narrative description set forth above
under Item 5.
(c) Exhibits - None.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SENTRY TECHNOLOGY CORPORATION
By: /S/ PETER J. MUNDY
Peter J. Mundy
Vice President-Finance,
Secretary and Treasurer
Dated: March 10, 1997
